South East Europe’s energy transition is being supported by multiple financing channels beyond bank debt, including equity capital markets, green bonds, corporate debt, development finance institution (DFI) finance and project-finance structures. The investment requirement is described as too large for bank lending alone, with an asset base that is diverse and a market that is becoming more sophisticated. The region’s capital markets are also described as uneven across countries.
Uneven depth across SEE energy capital markets
Greece and Romania are cited as having the deepest energy capital-market stories. Bulgaria, Croatia and Slovenia are described as having institutional capital but fewer large listed energy champions. In the Western Balkans, transactions are described as more dependent on DFIs, local banks, strategic investors and state-backed utilities.
Romania’s Hidroelectrica IPO sets a benchmark
Romania’s Hidroelectrica initial public offering remains the defining SEE capital-market transaction. The €1.9 billion listing was the largest ever IPO on the Bucharest Stock Exchange, the third-largest in Central and Eastern Europe at the time, and the largest European IPO of 2023. The transaction is presented as evidence that large, cash-generative and strategically important assets can attract international institutional capital.
The IPO is described as not being a speculative green story, with Hidroelectrica characterized as a mature hydropower producer with scale, strategic relevance and strong profitability. It is also described as an exception within SEE renewables financing patterns. Most renewable platforms in the region are described as more likely to exit through trade sales, infrastructure funds, asset rotation or strategic minority stakes than through IPOs.
Corporate green bonds and utility refinancing in Greece
Corporate bond markets are described as becoming more relevant, especially in Greece. In October 2025, PPC priced €775 million of 4.25% Green Senior Notes due 2030. The deal is presented as showing how large regional utilities can use green debt markets to refinance liabilities and fund eligible green projects.
The issuance is described as creating a bridge between corporate transformation and project deployment. It is stated that a large utility does not need to finance every wind, solar or storage asset with separate non-recourse project debt. Corporate-level green financing can be used where investors believe in the credit story and the green framework.
Banks and DFIs in renewable finance
Banks are identified as another key channel for renewable finance across SEE. Greek banks, Romanian banks and regional groups including Erste, UniCredit, Raiffeisen, Intesa Sanpaolo, OTP and Piraeus are cited as central to renewable finance activities. The role is described as extending beyond direct project lending to include support for green bond markets, corporate refinancing and DFI-led syndications.
EBRD, EIB and IFC are described as particularly important DFIs because they reduce financing risk, mobilize commercial banks and support regulatory frameworks such as auctions and CfDs. An example cited is EBRD’s €175 million loan to PPC for around 400 MW of wind and solar projects across Bulgaria, Greece and Romania. InvestEU support is referenced as enabling longer-term funding for that rollout.
EIB lending in the Western Balkans
The EIB Group is described as a major source of climate and infrastructure finance in the Western Balkans. The EIB Group invested €822 million in the Western Balkans in 2025. It also signed a €103 million loan for the 132 MW Poklečani wind farm in Bosnia and Herzegovina.
CfDs, auction-backed revenues and typical capital stacks
The capital stack for bankable SEE renewables is described as typically layered, including sponsor equity, commercial bank debt, DFI participation and auction-backed or contracted revenue. EU grant or guarantee support is also mentioned as sometimes part of financing structures. In more advanced markets, corporate PPAs and merchant components are described as becoming more accepted, while lenders in less mature markets are said to prefer clearer revenue support.
CfDs in Romania are highlighted for turning renewable projects into more financeable assets. EBRD states that under Romania’s CfD scheme it has awarded 4.2 GW of solar and wind capacity across two auctions. This amount is said to exceed Romania’s national target of 3.5 GW under its Recovery and Resilience Plan.
What investors require from projects in SEE
The financing question for SEE is framed around whether projects are structured so that capital can absorb them rather than whether money exists. Investors are described as seeking visibility while banks seek bankability; bondholders seek credit discipline; DFIs seek transition impact; strategic buyers seek platforms; and governments seek capacity alongside lower consumer risk. The strongest projects are described as needing to satisfy several of those requirements at once.
The direction for South East Europe’s energy capital markets is described as developing toward access to green bonds by mature utilities, listings by large national champions and project finance raised by strong projects. DFI participation is described as crowding in commercial banks, while auctions and CfDs are described as transforming early markets into bankable markets . The next stage is described as deeper local capital participation alongside more green-bond issuance, more storage finance and more hybrid corporate/project structures . The region is described as lacking enough de-risked, grid-secured and well-structured assets ready for that capital.
